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Lease Accounting
 12 Months Ended
Feb. 03, 2024
Leases [Abstract]  
Lease Accounting Lease Accounting
The Company primarily leases its showrooms, advertising, licensing, sales and merchandising offices, remote distribution and warehousing facilities and retail and factory outlet store locations under operating lease agreements expiring on various dates through January 2039. The Company also leases some of its equipment as well as computer hardware and software under operating and finance lease agreements expiring on various dates through December 2028.
The Company’s lease agreements primarily provide for lease payments based on a minimum annual rental amount, a percentage of annual sales volume, periodic adjustments related to inflation or a combination of such lease payments. Certain retail store leases provide for lease payments based upon the minimum annual rental amount and a percentage of annual sales volume, generally ranging from 3% to 26%, when specific sales volumes are exceeded. The Company’s retail concession leases also provide for lease payments primarily based upon a percentage of annual sales volume which averages approximately 25%.
In addition to the amounts as disclosed below, the Company has estimated additional operating lease commitments of approximately $34.5 million for leases where the Company has not yet taken possession of the underlying asset as of February 3, 2024. As such, the related operating lease ROU assets and operating lease liabilities have not been recognized in the Company’s consolidated balance sheet as of February 3, 2024.
The components of leases are as follows (in thousands):
Feb 3, 2024Jan 28, 2023
AssetsBalance Sheet Location
Operating$667,031 $636,148 Operating lease right-of-use assets
Finance15,132 19,055 Property and equipment, net
Total lease assets$682,163 $655,203 
Liabilities
Current:
Operating$166,451 $170,192 Current portion of operating lease liabilities
Finance5,573 6,684 Current portion of borrowings and finance lease obligations
Noncurrent:
Operating542,392 528,236 Long-term operating lease liabilities
Finance9,857 13,181 Long-term debt and finance lease obligations
Total lease liabilities$724,273 $718,293 
Year Ended
Feb 3, 2024Jan 28, 2023Jan 29, 2022
Income Statement Location
Operating lease costs$181,760 $175,752 $181,888 Cost of product sales
Operating lease costs26,771 24,845 25,047 Selling, general and administrative expenses
Operating lease costs1
(1,662)(2,267)(259)Net gains on lease modifications
Finance lease costs
Amortization of leased assets69 81 55 Cost of product sales
Amortization of leased assets6,412 6,177 5,525 Selling, general and administrative expenses
Interest on lease liabilities769 965 1,462 Interest expense
Variable lease costs2
101,056 92,331 75,339 Cost of product sales
Variable lease costs2
4,732 3,335 2,175 Selling, general and administrative expenses
Short-term lease costs316 351 366 Cost of product sales
Short-term lease costs6,005 6,141 4,856 Selling, general and administrative expenses
Total lease costs$326,228 $307,711 $296,454 
______________________________________________________________________
1During fiscal 2024, fiscal 2023 and fiscal 2022 net gains on lease modifications related primarily to the early termination of certain lease agreements. Operating lease costs for these retail locations prior to the early termination were included in cost of product sales.
2During fiscal 2024, fiscal 2023 and fiscal 2022 variable lease costs included certain rent concessions received by the Company, primarily in Europe, of approximately $1.7 million, $5.2 million and $17.3 million, respectively.
Maturities of the Company’s operating and finance lease liabilities as of February 3, 2024 are as follows (in thousands):
Operating Leases
Non-Related PartiesRelated PartiesFinance LeasesTotal
Maturity of Lease Liabilities:
Fiscal 2025$187,362 $8,337 $6,202 $201,901 
Fiscal 2026134,829 7,228 5,686 147,743 
Fiscal 2027118,529 7,785 3,170 129,484 
Fiscal 202887,931 7,699 1,337 96,967 
Fiscal 202969,087 8,464 284 77,835 
Thereafter170,866 12,325 — 183,191 
Total lease payments768,604 51,838 16,679 837,121 
Less: Interest101,047 10,552 1,249 112,848 
Present value of lease liabilities$667,557 $41,286 $15,430 $724,273 
Other supplemental information is as follows (in thousands):
Feb 3, 2024
Lease Term and Discount Rate:
Weighted-average remaining lease term (years)
Operating leases6.2 years
Finance leases3.1 years
Weighted-average discount rate
Operating leases4.9%
Finance leases5.1%
Year Ended
Feb 3, 2024Jan 28, 2023Jan 29, 2022
Supplemental Cash Flow Information:
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$207,575 $220,767 $225,652 
New operating ROU assets obtained in exchange for lease liabilities$165,889 $131,363 $156,102 
Lease Accounting Lease Accounting
The Company primarily leases its showrooms, advertising, licensing, sales and merchandising offices, remote distribution and warehousing facilities and retail and factory outlet store locations under operating lease agreements expiring on various dates through January 2039. The Company also leases some of its equipment as well as computer hardware and software under operating and finance lease agreements expiring on various dates through December 2028.
The Company’s lease agreements primarily provide for lease payments based on a minimum annual rental amount, a percentage of annual sales volume, periodic adjustments related to inflation or a combination of such lease payments. Certain retail store leases provide for lease payments based upon the minimum annual rental amount and a percentage of annual sales volume, generally ranging from 3% to 26%, when specific sales volumes are exceeded. The Company’s retail concession leases also provide for lease payments primarily based upon a percentage of annual sales volume which averages approximately 25%.
In addition to the amounts as disclosed below, the Company has estimated additional operating lease commitments of approximately $34.5 million for leases where the Company has not yet taken possession of the underlying asset as of February 3, 2024. As such, the related operating lease ROU assets and operating lease liabilities have not been recognized in the Company’s consolidated balance sheet as of February 3, 2024.
The components of leases are as follows (in thousands):
Feb 3, 2024Jan 28, 2023
AssetsBalance Sheet Location
Operating$667,031 $636,148 Operating lease right-of-use assets
Finance15,132 19,055 Property and equipment, net
Total lease assets$682,163 $655,203 
Liabilities
Current:
Operating$166,451 $170,192 Current portion of operating lease liabilities
Finance5,573 6,684 Current portion of borrowings and finance lease obligations
Noncurrent:
Operating542,392 528,236 Long-term operating lease liabilities
Finance9,857 13,181 Long-term debt and finance lease obligations
Total lease liabilities$724,273 $718,293 
Year Ended
Feb 3, 2024Jan 28, 2023Jan 29, 2022
Income Statement Location
Operating lease costs$181,760 $175,752 $181,888 Cost of product sales
Operating lease costs26,771 24,845 25,047 Selling, general and administrative expenses
Operating lease costs1
(1,662)(2,267)(259)Net gains on lease modifications
Finance lease costs
Amortization of leased assets69 81 55 Cost of product sales
Amortization of leased assets6,412 6,177 5,525 Selling, general and administrative expenses
Interest on lease liabilities769 965 1,462 Interest expense
Variable lease costs2
101,056 92,331 75,339 Cost of product sales
Variable lease costs2
4,732 3,335 2,175 Selling, general and administrative expenses
Short-term lease costs316 351 366 Cost of product sales
Short-term lease costs6,005 6,141 4,856 Selling, general and administrative expenses
Total lease costs$326,228 $307,711 $296,454 
______________________________________________________________________
1During fiscal 2024, fiscal 2023 and fiscal 2022 net gains on lease modifications related primarily to the early termination of certain lease agreements. Operating lease costs for these retail locations prior to the early termination were included in cost of product sales.
2During fiscal 2024, fiscal 2023 and fiscal 2022 variable lease costs included certain rent concessions received by the Company, primarily in Europe, of approximately $1.7 million, $5.2 million and $17.3 million, respectively.
Maturities of the Company’s operating and finance lease liabilities as of February 3, 2024 are as follows (in thousands):
Operating Leases
Non-Related PartiesRelated PartiesFinance LeasesTotal
Maturity of Lease Liabilities:
Fiscal 2025$187,362 $8,337 $6,202 $201,901 
Fiscal 2026134,829 7,228 5,686 147,743 
Fiscal 2027118,529 7,785 3,170 129,484 
Fiscal 202887,931 7,699 1,337 96,967 
Fiscal 202969,087 8,464 284 77,835 
Thereafter170,866 12,325 — 183,191 
Total lease payments768,604 51,838 16,679 837,121 
Less: Interest101,047 10,552 1,249 112,848 
Present value of lease liabilities$667,557 $41,286 $15,430 $724,273 
Other supplemental information is as follows (in thousands):
Feb 3, 2024
Lease Term and Discount Rate:
Weighted-average remaining lease term (years)
Operating leases6.2 years
Finance leases3.1 years
Weighted-average discount rate
Operating leases4.9%
Finance leases5.1%
Year Ended
Feb 3, 2024Jan 28, 2023Jan 29, 2022
Supplemental Cash Flow Information:
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$207,575 $220,767 $225,652 
New operating ROU assets obtained in exchange for lease liabilities$165,889 $131,363 $156,102